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Every investor in The Peria Karamalai Tea and Produce Company Limited (NSE:PKTEA) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Peria Karamalai Tea and Produce is a smaller company with a market capitalization of ₹384m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about PKTEA.
View our latest analysis for Peria Karamalai Tea and Produce
What Does The Institutional Ownership Tell Us About Peria Karamalai Tea and Produce?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Peria Karamalai Tea and Produce does have institutional investors; and they hold 34% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Peria Karamalai Tea and Produce's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Peria Karamalai Tea and Produce. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Peria Karamalai Tea and Produce
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.